The “High-Income” Trap
Ms. To Linh, a resident of Cau Giay, Hanoi, works in a communications company with a monthly income of 16 million VND. Her husband earns a similar salary. Their combined income is only 2 million VND higher than the eligibility threshold, disqualifying them from purchasing social housing.
“With a combined income of 32 million VND per month and a young family to support, we barely break even on our expenses. Some months, we can save around 3-5 million VND. This income level only qualifies us for social housing as commercial properties in Hanoi are now extremely expensive. It’s frustrating that our income disqualifies us from accessing social housing as well,” shared Ms. Linh.
Mr. Nguyen Hung, a resident of Ha Dong, Hanoi, faces a similar dilemma. His household income of 35 million VND per month is considered high, disqualifying him from purchasing social housing despite meeting all other criteria.
Many individuals are caught between being too rich for social housing but not rich enough for commercial properties. |
“It’s unfair for young families like mine. Living expenses in Hanoi are high. Newly launched commercial apartments are priced at an average of 80 million VND per square meter, which is unaffordable for my family. Even pre-owned social housing units cost 60-65 million VND per square meter, while upcoming social housing projects offer prices as low as 25 million VND per square meter. If we can’t purchase new social housing, my family will never be able to afford a home in Hanoi,” expressed Mr. Hung.
Reevaluating the Criteria
Mr. Nguyen Hoang Nam, CEO of G-Home, suggested that the eligibility criteria for social housing beneficiaries should be adjusted to accommodate those who are not considered rich but still struggle to afford commercial properties, even with taxable incomes and savings.
Mr. Nguyen Xuan Dung, Chairman of Viconship, added: “With a maximum income of 15 million VND per month to qualify for social housing, individuals would have to spend around 7-8 million VND on loan repayments. This leaves low-income families with only 7 million VND for their monthly expenses, which is unreasonable and needs to be reevaluated.”
From an investor’s perspective, Mr. Dung highlighted that this situation creates significant challenges for businesses trying to sell their products in the market. If left unaddressed, developers will struggle to find customers for their projects.
Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, pointed out that commercial apartment prices in major cities like Hanoi and Ho Chi Minh City are out of reach for many families, especially young ones.
Currently, there are two loan packages available for individuals under 35 years old to purchase social housing. However, the supply of social housing is limited, and many families find themselves in a predicament where they are not rich enough for commercial properties but do not qualify for social housing based on their income.
“We must immediately adjust the income criteria to expand the eligibility for social housing and address the economic realities of large cities,” urged Mr. Dinh.
|
According to Clause 30 of Decree 100/2024/ND-CP, effective from August 1, 2024, to be eligible for social housing support, an individual must have a monthly income not exceeding 15 million VND (if unmarried) or a combined income of no more than 30 million VND for a married couple. |
Ngoc Mai
– 06:06 07/06/2025
Unlocking the Property Market: Strategies for First-time Buyers with Limited Income
“The current eligibility criteria for purchasing social housing in Vietnam is outdated and fails to reflect the modern reality of living in Hanoi and Ho Chi Minh City. With the cost of living surging, a monthly income of 15 million VND is no longer sufficient. Those earning between 15 and 20 million VND are caught in a bind, unable to afford commercial housing yet ineligible for social housing. It’s a dilemma that demands attention and a revision of the current system.”
Social Housing Credit: Fear of Fizzling Out, Package After Package
According to experts, the new credit package offered by 9 banks for young people under 35 years old to buy social housing is essentially no different from the VND 120,000 billion package currently being implemented, despite the longer incentive period. With interest rates still high and limited social housing supply, this package risks falling into the same pitfalls as its predecessor.
“Streamlined and Superior: How Special Mechanisms Slashed Over 1,000 Days Off Social Housing Procedures.”
“This information was presented by Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HOREA), at a seminar on “Breakthroughs for Social Housing Development” organized by the Government Portal on June 5th.”
Over 3,900 Affordable Homes Up for Sale This May
According to data from local construction departments, there were 24 projects with a total of 5,170 units eligible for the sale of future construction housing in 11 provinces and cities in May 2025. Social housing continues to dominate with 3,935 units.
“Credit Packaging for the Under-35s: A Pipe Dream?”
According to experts, the new credit package offered by 9 banks for young people under 35 years old to buy social housing is essentially no different from the VND 120,000 billion package currently being implemented, despite the longer incentive period. With interest rates still high and limited supply of social housing, this package risks falling into the same pitfalls as its predecessor.
